The Department for Work and Pensions (DWP) has issued a notification to certain pensioners indicating that from April their payments will be halted.
Those affected are pensioners who receive tax credits in addition to their state pension, but with the impending changes, these supplements will no longer be available. The DWP mentioned that while some individuals can transition to an alternative payment scheme, others won’t meet the criteria after the adjustments take place.
This development has been identified by pensioners reliant on tax credits, which will cease to exist come April, leaving them the option to switch either to Universal Credit or Pension Credit. Most of those receiving tax credits have already converted to one of these new systems, yet there remain some who only have a few weeks left of their current benefits.
These pensioners are able to request additional assistance, however, this change follows many having already missed out on Winter Fuel Payments during the year due to the introduction of means testing.
Those residing in poverty are advised that they may be eligible for Pension Credit, which supplements low pension incomes and could lead to access to other benefits worth approximately £10,000, including discounts on some household bills and a free TV licence, reports Lancs Live.
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A DWP letter clearly states: “Universal Credit is replacing tax credits. If you do not claim by the deadline date in that letter your existing tax credits payments will stop, even if you have just renewed your tax credits claim.
“If you are claiming tax credits and are state pension age or over, the DWP or the Department for Communities (Northern Ireland) will write to you to ask you to apply for Universal Credit or Pension Credit, depending on your circumstances. A very small number of customers will not be eligible for Universal Credit or Pension Credit.
“These customers will be able to remain on and receive tax credits until April 5, 2025, unless a change in their circumstances ends tax credits sooner. After this date, tax credits will end, and no further tax credits payments will be made.”